Data centres and grid upgrades buoy US E&S consulting market

After several years of double-digit growth, the US environmental and sustainability (E&S) consulting market grew a more modest 8.5% in 2024, surpassing $25bn.

Post-pandemic project backlogs had cleared by then. And even under the Biden presidency, with clear intentions to continue upping federal funding for decarbonisation and clean energy infrastructure, in 2024, the government and regulators client sector grew only slightly, and the renewables client sector shrank.

Now, strategy and policy at the federal level is decidedly less pro-environment and sustainability. Yet backing from the private sector for bigger, more resilient data centres, and energy transmission capacity, are among the forces propping up the US market’s forecast out to 2029.

Access a sample report here: US Environmental & Sustainability Consulting Market Assessment : March 2026 Edition

Data centres drive demand

While the professional services client sector accounts for a small share of total spending on E&S consulting in the US, it has recently been the fastest growing.

Driven largely by IT & communications client spending, revenues in this area grew over 35% in 2024, and are expected to outpace the rest of the market on a percentage basis out to 2029.

This surge links to rapid data centre expansion. These projects create multi-year pipelines across a range of service areas, including impact assessment, water management and EHS.

The scale and number of new data centres being planned and built raise challenges around water use, land and power availability, which will increase demand for specialist advisory services for years to come.

Grids lead near-term growth, while renewables stall

Spending on E&S consulting from energy and utilities clients continues to grow. Grid upgrades and expansion programmes are expected to support longer-term demand and keep this client sector among the largest parts of the market.

Within this, the energy transmission subsector grew the fastest in 2024 and remained the largest subsegment. As clients continue to respond to rising power demand, including from AI, this part of the market is set to be among the fast growing out to 2029.

E&S consulting revenue from renewable energy clients declined slightly in 2024, as developers faced higher borrowing costs, supply chain delays, grid connection bottlenecks and heightened policy uncertainty, ahead of the then upcoming election and presidency.

In contrast, oil and gas activity showed continued, though muted, growth in 2024. Rising electricity demand and new gas plant pipelines will support this sector into 2025 and beyond.

Another key utility client sector, water and wastewater, is growing steadily, supported by regulatory needs and climate resilience priorities. This subsector is less sensitive to current federal disruption than others, although some federal funding is expected to taper by 2027.

State action offsets weaker federal momentum

Government and regulators remained the largest client segment in 2024, despite only modest growth that year.

This followed a strong period of growth during the Biden presidency’s generous spending spree for infrastructure and decarbonisation, as well as a post-pandemic backlog.

Uncertainty around federal policy is slowing planning cycles, with funding and staffing cuts across federal agencies, and enforcement changes, weighing especially heavy on growth.

However, state-level action is helping sustain demand for E&S consulting. States, such as California, New York and Washington, are stepping in to fill regulatory gaps and responsibility is likely to shift further to state and local levels in the coming years.

Though recent actions, even in Democrat-run states, have not always promoted faster progress on E&S issues – New York’s governor, Kathy Hochul, announced a proposal to push back a requirement for GHG emission regulations in the state, and replace a 2030 emissions target with one for 2040.

One area still expected to be driven by federal spending is defence, with coastal and critical infrastructure being priorities for the government.

The overall government and regulators client sector is forecast to see steady, but slower, growth compared with others, out to 2029.

Industrial and infrastructure demand strengthens

E&S consulting revenues from the extractive, manufacturing and processing sector continue to grow steadily, with a strong five-year outlook.

This reflects reshoring and rising demand for critical minerals, which the US government sees as strategic priorities. AI and data centre supply chains also boost manufacturing activity.

This sector is highly concentrated, with a small number of large firms holding a significant share of the market. High market concentration suggests strong competition for large contracts, while smaller firms may find opportunities in niche or specialist services. 

The infrastructure and development client sector is also showing steady growth, with a stable outlook. Transport projects remain active, supported by federal investment programmes like Infrastructure Investment and Jobs Act (IIJA).